Hibernia REIT has acquired The Chancery Building, The Chancery Apartments and the adjoining Napper Tandy Site on Chancery Lane, Dublin 8 for EUR16m.
Hibernia will acquire the property through the purchase of a loan which, in conjunction with an agreement with the original owners, will give the company full ownership of the underlying assets.
The Chancery Building is a 33,799 sq. ft. office building comprising six stories over basement with 19 underground parking spaces. It is fully let to the Irish civil service, Wella UK and Gala Networks Europe with a weighted average unexpired lease term of two years to break and nine years to expiry. The rent roll is EUR1.1m per annum equating to an average passing rent of EUR30 per sq. ft. The price paid of EUR16 m equates to a capital value of EUR445 sq. ft. on the commercial element and a blended net initial yield of 6.8 per cent.
The Chancery Apartments consist of four two-bed apartments in the same building accessed via a separate entrance onto Chancery Lane. They are let on one year leases producing a combined current annual rent of EUR63,360. At the price paid of EUR1.0m, the net initial yield is 6.1 per cent based on gross income.
The Napper Tandy site is a small 0.05 acre corner site. It currently has planning consent for a c. 13,900 sq. ft. NIA office building or a 45 ‘suite’ student accommodation building.
The area is close to Dublin Castle and is a popular location for government agencies and office occupiers from a broad base of sectors.
Kevin Nowlan, CEO, says: “This acquisition is the fifth made by Hibernia since its listing and brings total funds committed to approximately EUR225m. It again demonstrates our ability to acquire property assets at attractive prices in prime central Dublin locations.”